LRB-0725/1
JK:jld:rs
2013 - 2014 LEGISLATURE
February 15, 2013 - Introduced by Representatives Bies, Ballweg, Bernier,
Kleefisch and T. Larson, cosponsored by Senator Kedzie. Referred to
Committee on Tourism.
AB16,1,4 1An Act to amend 71.05 (6) (a) 15., 71.05 (6) (b) 47. b., 71.21 (4) (a), 71.26 (2) (a)
24., 71.34 (1k) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (5p), 71.10
3(4) (cs), 71.28 (5p), 71.30 (3) (dr), 71.47 (5p) and 71.49 (1) (dn) of the statutes;
4relating to: a tax credit for hospitality business advertising.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit equal to 10 percent of the
amount that a taxpayer spends in the taxable year on advertising outside of this state
to promote the taxpayer's hospitality business located in this state. If the credit
claimed by a taxpayer exceeds the taxpayer's tax liability, the state will not issue a
refund check, but the taxpayer may carry forward any remaining credit to
subsequent taxable years.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB16,1 5Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB16,2,56 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
7credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds),

1(2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h),
2(5i), (5j), (5k), (5p), (5r), (5rm), (6n), and (8r) and not passed through by a partnership,
3limited liability company, or tax-option corporation that has added that amount to
4the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
5or 71.34 (1k) (g).
AB16,2 6Section 2. 71.05 (6) (b) 47. b. of the statutes is amended to read:
AB16,3,27 71.05 (6) (b) 47. b. With respect to partners and members of limited liability
8companies, for taxable years beginning after December 31, 2010, for 2 consecutive
9taxable years beginning with the taxable year in which the partnership's or limited
10liability company's business locates to this state from another state or another
11country and begins doing business in this state, as defined in s. 71.22 (1r), and subject
12to the limitations provided under subd. 47. d. and e., the partner's or member's
13distributive share of taxable income as calculated under section 703 of the Internal
14Revenue Code; plus the items of income and gain under section 702 of the Internal
15Revenue Code, including taxable state and municipal bond interest and excluding
16nontaxable interest income or dividend income from federal government obligations;
17minus the items of loss and deduction under section 702 of the Internal Revenue
18Code, except items that are not deductible under s. 71.21; plus guaranteed payments
19to partners under section 707 (c) of the Internal Revenue Code; plus the credits
20claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy),
21(3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i),
22(5j), (5k), (5p), (5r), (5rm), and (8r); and plus or minus, as appropriate, transitional
23adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15),
24(16), (17), and (19), multiplied by the apportionment fraction determined in s. 71.04

1(4) and subject to s. 71.04 (7) or by separate accounting. No amounts subtracted
2under this subd. 47. b. may be included in the modification under par. (b) 9. or 9m.
AB16,3 3Section 3. 71.07 (5p) of the statutes is created to read:
AB16,3,54 71.07 (5p) Hospitality business advertising credit. (a) Definitions. In this
5subsection:
AB16,3,86 1. "Advertising" means radio and television commercials and advertising that
7appears in printed form, including billboards and advertisements in newspapers and
8magazines.
AB16,3,99 2. "Claimant" means a person who files a claim under this subsection.
AB16,3,1310 3. "Hospitality business" means a hospitality business located in this state,
11including a business that is classified in the standard industrial classification
12manual, 1987 edition, published by the U.S. office of management and budget, under
13any of the following industry numbers:
AB16,3,1414 a. 5812 — Eating places.
AB16,3,1515 b. 5813 — Drinking places.
AB16,3,1616 c. 7011 — Hotels and motels.
AB16,3,1717 d. 7032 — Sporting and recreational camps.
AB16,3,1818 e. 7033 — Recreational vehicle parks and campsites.
AB16,3,1919 f. 7922 — Theatrical producers and miscellaneous theatrical services.
AB16,3,2120 g. 7929 — Bands, orchestras, actors, and other entertainers and entertainment
21groups.
AB16,3,2222 h. 7948 — Racing, including track operation.
AB16,3,2323 i. 7992 — Public golf courses.
AB16,3,2424 j. 7996 — Amusement parks.
AB16,3,2525 k. 7997 — Membership sports and recreation clubs.
AB16,4,1
1L. 7999 — Amusement and recreational services, not elsewhere classified.
AB16,4,72 (b) Filing claims. Subject to the limitations provided in this subsection, a
3claimant may claim as a credit against the tax imposed under s. 71.02, up to the
4amount of the tax, an amount equal to 10 percent of the amount the claimant spent
5in the taxable year on advertising outside of this state to promote the claimant's
6hospitality business, if the cost of the advertising was directly incurred by the
7claimant's business operations in this state.
AB16,4,158 (c) Limitations. Partnerships, limited liability companies, and tax-option
9corporations may not claim the credit under this subsection, but the eligibility for,
10and the amount of, the credit are based on their payment of amounts under par. (b).
11A partnership, limited liability company, or tax-option corporation shall compute
12the amount of credit that each of its partners, members, or shareholders may claim
13and shall provide that information to each of them. Partners, members of limited
14liability companies, and shareholders of tax-option corporations may claim the
15credit in proportion to their ownership interests.
AB16,4,1716 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
17s. 71.28 (4), applies to the credit under this subsection.
AB16,4 18Section 4. 71.10 (4) (cs) of the statutes is created to read:
AB16,4,1919 71.10 (4) (cs) Hospitality business advertising credit under s. 71.07 (5p).
AB16,5 20Section 5. 71.21 (4) (a) of the statutes is amended to read:
AB16,4,2521 71.21 (4) (a) The amount of the credits computed by a partnership under s.
2271.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p),
23(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r),
24(5rm), (6n), and (8r) and passed through to partners shall be added to the
25partnership's income.
AB16,6
1Section 6. 71.26 (2) (a) 4. of the statutes is amended to read:
AB16,5,82 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
3(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
4(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r),
5and (9s) and not passed through by a partnership, limited liability company, or
6tax-option corporation that has added that amount to the partnership's, limited
7liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
8(g).
AB16,7 9Section 7. 71.28 (5p) of the statutes is created to read:
AB16,5,1110 71.28 (5p) Hospitality business advertising credit. (a) Definitions. In this
11subsection:
AB16,5,1412 1. "Advertising" means radio and television commercials and advertising that
13appears in printed form, including billboards and advertisements in newspapers and
14magazines.
AB16,5,1515 2. "Claimant" means a person who files a claim under this subsection.
AB16,5,1916 3. "Hospitality business" means a hospitality business located in this state,
17including a business that is classified in the standard industrial classification
18manual, 1987 edition, published by the U.S. office of management and budget, under
19any of the following industry numbers:
AB16,5,2020 a. 5812 — Eating places.
AB16,5,2121 b. 5813 — Drinking places.
AB16,5,2222 c. 7011 — Hotels and motels.
AB16,5,2323 d. 7032 — Sporting and recreational camps.
Loading...
Loading...